14 October 2020

1) Cuba’s economic minister urged calm as the government prepares to unify its dual currency system and multiple exchange rates in hopes of improving economic performance. The nation is undergoing a crisis caused by new U.S. sanctions on top of decades-old embargos, the pandemic and its inefficient Soviet-style command economy. The country could not overcome the crisis without unification which included wage, pension and other measures to protect the population. The monetary reform will eliminate the convertible peso while leaving a devalued peso, the officially exchanged rate since the 1959 Revolution is one peso to the dollar. The country would end up with a single currency and exchange rate with the dollar, but it’s unknown what the rate might be or the date devaluation would happen. Economists forecast this will cause triple digit inflation and bankruptcies while at the same time stimulating domestic economic efficiency and exports over imports.
2) Two more arms sales to Taiwan is reported to be moving forward. America is seeking to sell sophisticated military equipment, the MQ-9 drone aircraft and a coastal defensive missile system putting the island nation in a better position to repulse invasion by Red China, who claims Taiwan is a wayward province. China has stated she will reunite the province to the mainland, by force if necessary. Presently, there are as many as seven major weapon systems making their way through the U.S. export process, as the administration ramps up pressure on China. All arm sales to Taiwan must be approved by the Senate.
3) California’s PG&E (Pacific Gas & Electric) company is warning of up coming power outages in Northen California because of increased fire risk. Two dangerous wind events are expected this Wednesday and Thursday and into Friday. High winds pose a fire danger from sparking of power lines into vegetation, thus starting fires in dry areas already ravaged by fires. Power outages are anticipated in 34 California counties. Cutting off the electrical power is presently the only means to ensure against sparking wild fires in windy conditions, and has become standard operation procedure.
4) Stock market closings for – 13 OCT 20:
Dow 28,679.81 unchanged
Nasdaq 11,863.90 unchanged
S&P 500 3,511.93 unchanged
10 Year Yield: down at 0.73%
Oil: up at $40.18



By: Economic & Finance Report

The world has reacted to the death of Fidel Alejandro Castro Ruz.

Friday evening into Saturday, world leaders, people around the world, Cubans and Cuban Americans gave their own interpretations and reactions to the man who ruled Cuba for close to 50 years, Fidel Castro. -SB


cuba travel

By: Economic & Finance Report

JetBlue has indicated they will add a secondary charter flight from JFK Airport (Queens, NYC) to Havana, Cuba. The trips will be flown every Tuesday, non stop and direct, from New York City to Havana, and vise versa. JetBlue will do this in partnership with Cuba based, Cuba Travel Services, who are licensed by the U.S. government to provide service flights into Cuba.

Flights flying into Cuba are allowed to fly directly without the intervention of the U.S. Treasury Dept. However, US tourism as a who is still banned but relaxation of the ban is critical in progress between the United States and Cuba.

During the U.S. trade embargo of 1962, United States flights going into Cuba were suspended indefinitely. -SB